'London would supply most of mansion tax yield'
Published by Max Salsbury for 24dash.com in Housing and also in Finance
mansionImage: Mansion via Shutterstock
Over 95% of the yield from the proposed mansion tax would come from London and the South East, research has shown.
And according to property website Zoopla.co.uk's study, more than a third of the projected £1.2 billion that the tax could net would come from one London borough - Kensington & Chelsea.
The mansion tax, which has been proposed by Labour and the Liberal Democrats, would effect over 82,000 households across the country - with the average home hit with a £14,500 bill.
According to Zoopla, the policy would effectively be a "London tax" with 87.4% (£1.04bn) of the take coming from Londoners, the rest of the South East contributing 7.9% (£94m) and the whole of the rest of country combined liable for 4.7% (£56m).
With the tax would affecting properties worth over £2 million, 18,660 homes would be hit in Kensington & Chelsea, generating £427m.
Astonishingly, a 67% of the income from a nation-wide mansion tax would come from just three London boroughs - Kensington & Chelsea, Westminster and Camden.
Lawrence Hall of Zoopla.co.uk, said: “Homeowners in London and the South East already pay the lion’s share of UK property taxes with the stamp duty thresholds placing a heavy burden already on higher priced properties. Implementing an additional charge based on higher property values over an arbitrary threshold would only serve to further distort the market.
“Not only have the Lib Dems and Labour overestimated the amount the proposed tax would generate (up to £2bn estimated versus actually under £1.2bn) and underestimated the number of homeowners that would be affected (70,000 estimated versus over 82,000 currently and growing daily), but it’s also hugely misrepresentative to call it a ‘mansion tax’ when most of the burden will fall on relatively modest family homes and flats in London.”